According to the Canada Mortgage and Housing Corp. (CMHC) basement developments provide 50 to 75 per cent return on investment.

CMHC advises homeowners ready to transform their basements to do a bit of preplanning and management to save time and money, including talking to friends and neighbours who've renovated because they are sure to have a number of time-saving tips and words of advice.

Homeowners should also inspect their basements for signs of moisture or mould or cracks in the walls or floors.

And don't forget to contact your municipality to obtain a building permit.

Renovation grants and rebates are available from the federal and provincial governments and local utilities, especially for energy-saving renovations.

"People are becoming more knowledgeable about energy-efficient homes," says Don James, chairman of the Calgary region's renovation council -- an arm of the Canadian Home Builders' Association (CHBA). "Whether it's higher efficiency furnaces, better windows and insulation -- they're aware of it. They start to realize the value of energy."

The federal ecoENERGY Retrofit-Homes program provides grants to offset the cost of making energy-efficient improvements.

Program participants may also be eligible for additional rebates on retrofit evaluations, and on the purchases of high-efficiency furnaces, water heaters and more through their provincial governments.

"By the time you add up all of the tax incentives, grants and rebates, they really start to have an effect," says James. "But, remember, you have to spend the money to get it."